Correlation Between Garudafood Putra and Era Media
Can any of the company-specific risk be diversified away by investing in both Garudafood Putra and Era Media at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Garudafood Putra and Era Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Garudafood Putra Putri and Era Media Sejahtera, you can compare the effects of market volatilities on Garudafood Putra and Era Media and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Garudafood Putra with a short position of Era Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garudafood Putra and Era Media.
Diversification Opportunities for Garudafood Putra and Era Media
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Garudafood and Era is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Garudafood Putra Putri and Era Media Sejahtera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Era Media Sejahtera and Garudafood Putra is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Garudafood Putra Putri are associated (or correlated) with Era Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Era Media Sejahtera has no effect on the direction of Garudafood Putra i.e., Garudafood Putra and Era Media go up and down completely randomly.
Pair Corralation between Garudafood Putra and Era Media
Assuming the 90 days trading horizon Garudafood Putra Putri is expected to under-perform the Era Media. In addition to that, Garudafood Putra is 1.59 times more volatile than Era Media Sejahtera. It trades about -0.18 of its total potential returns per unit of risk. Era Media Sejahtera is currently generating about -0.05 per unit of volatility. If you would invest 5,600 in Era Media Sejahtera on September 2, 2024 and sell it today you would lose (100.00) from holding Era Media Sejahtera or give up 1.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Garudafood Putra Putri vs. Era Media Sejahtera
Performance |
| Timeline |
| Garudafood Putra Putri |
| Era Media Sejahtera |
Garudafood Putra and Era Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Garudafood Putra and Era Media
The main advantage of trading using opposite Garudafood Putra and Era Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garudafood Putra position performs unexpectedly, Era Media can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Era Media will offset losses from the drop in Era Media's long position.| Garudafood Putra vs. Bank BRISyariah Tbk | Garudafood Putra vs. Mitra Pinasthika Mustika | Garudafood Putra vs. Jakarta Int Hotels | Garudafood Putra vs. Indosterling Technomedia Tbk |
| Era Media vs. Bank Central Asia | Era Media vs. Bank Rakyat Indonesia | Era Media vs. Bayan Resources Tbk | Era Media vs. Bank Mandiri Persero |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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